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Blu-ray. It was so expensive when it came out, and there really weren’t that many displays/TVs capable of showing off the increased resolution. I remember seeing a demo comparing it to DVD in a store and thinking, “Hmmm, that’s a little better, but it’s not a thousand dollars better.” Also, it was competing against another HD option, HD-DVD, which seemed to be a legitimate option developed by Toshiba. Ultimately, I think what pushed Blu-ray ahead was the Sony PS3. In addition to being the cheapest Blu-ray player at the time, at $600 (!), it allowed large games to be stored on a single disc, in contrast to Sony’s main gaming competition, Microsoft’s X360, with used standard DVD format discs and sometimes required disc swapping to play a game. Also, better TVs and displays became affordable and widely available, so that the increased detail offered by movies on Blu-ray could be appreciated.
Once Blu-ray became established, I was not surprised to see it become a popular digital storage media for computers, so at least I’m not completely short-sighted.